Thursday, 27 November 2014
Last updated 19 hours ago
Oct 29 2010 | 1:48am ET
Hedge fund fees have been coming down in response to investor pressure, but clients should be willing to pay for top managers, according to one such manager.
“When it comes to fees, true skills should still be worth a lot,” Clifford Asness, founder of AQR Capital Management, said. “If there’s any problem with the hedge fund industry, it’s not that there aren’t strategies worth 2 and 20, it’s that the whole industry is being priced as if it’s skill.”
Asness told the Buttonwood Gathering that diversified hedge funds generating high returns deserve to make 2% for management and 20% for performance. According to Hedge Fund Research, the average hedge fund now charges more like 1.5% and 19%.
“The problem with hedge funds being net long is not that net long is a bad idea, it’s that they are charging 2 and 20” for investing in stocks, he said.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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